UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549





FORM
10-Q





x QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES


EXCHANGE
ACT OF 1934





1-9370





(COMMISSION
FILE NUMBER)





FOR
THE QUARTERLY PERIOD DECEMBER 31, 2008





FOR





RECEIVABLE
ACQUISITION & MANAGEMENT CORPORATION





(Exact
Name of Registrant as Specified in the Charter)





DELAWARE
                
                13-3186327(State
      of Other Jurisdiction
                
                (I.R.S.
      Employerof
      Incorporation)
                
                Identification
      Number)





2500
Plaza 5, Harborside Financial Center


Jersey
City, NJ 07311


201-633-4725





Check
whether the Registrant (1) has filed all reports required by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the Registrant was required to file such reports) and
(2) has been subject to such filing requirements for the past 90 days: Yes x No
 ̈





As of
February 15, 2009, there were 16,052,896 shares of the Registrant’s Common
Stock, $0.001 par value per share, outstanding.





Transitional Small Business
Disclosure Format Yes ̈Nox








RECEIVABLE
ACQUISITION & MANAGEMENT CORPORATION





FOR
THE QUARTERLY PERIOD ENDED DECEMBER 31, 2009





TABLE
OF CONTENTS





PART
      I
                      FINANCIAL
      INFORMATIONITEM
      1.
                      FINANCIAL
      STATEMENTSITEM
      2.
                      MANAGEMENT’S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION &
      OPERATIONS
                      16RISK
      FACTORS
                      21ITEM
      3.
                      CONTROLS
      AND PROCEDURES
                      21PART
      II
                      OTHER
      INFORMATION
                      22ITEM
      1.
                      LEGAL
      PROCEEDINGS
                      22ITEM
      2.
                      UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
                      23ITEM
      3.
                      DEFAULTS
      UPON SENIOR SECURITIES
                      23ITEM
      4.
                      SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY HOLDERS
                      23ITEM
      5.
                      OTHER
      INFORMATION
                      23ITEM
      6.
                      EXHIBITS
                      23SIGNATURES
                      
                      24





THIS
REPORT CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES.
SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS, ASSUMPTIONS, ESTIMATES AND
PROJECTIONS ABOUT THE COMPANY AND ITS INDUSTRY.  FORWARD-LOOKING
STATEMENTS ARE SUBJECT TO KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS THAT MAY CAUSE ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE,
ACHIEVEMENTS AND PROSPECTS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED
OR  IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.  THE COMPANY
UNDERTAKES NO OBLIGATION TO UPDATE PUBLICLY ANY FORWARD-LOOKING STATEMENTS FOR
ANY REASON EVEN IF NEW INFORMATION BECOMES AVAILABLE OR OTHER EVENTS OCCURRING
IN THE FUTURE.







RECEIVABLE
ACQUISITION AND MANAGEMENT


CORPORATION
AND SUBSIDIARIES





CONDENSED
CONSOLIDATED


FINANCIAL
STATEMENTS





FOR
THE THREE MONTHS ENDED DECEMBER 31, 2008 AND 2007











RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES


NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


DECEMBER
31, 2008 AND 2007 (UNAUDITED)





PAGE(S)FINANCIAL
      STATEMENTS:Condensed
      Consolidated Balance Sheets as of December 31, 2008 (Unaudited) and
      September 30, 2008 (Audited)
                  3Condensed
      Consolidated Statements of Operations for the three months ended
      December 31, 2008 and 2007 (Unaudited)
                  4Condensed
      Consolidated Statements of Cash Flows for the three months ended December
      31, 2008 and 2007 (Unaudited)
                  5Notes
      to Consolidated Financial Statements
                  6-17








RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIESCONDENSED
      CONSOLIDATED BALANCE SHEETS  ASSETSDecember
      31,
                          
                          
                          September
      30,2008
                          
                          
                          2008(Unaudited)
                          
                          
                          (Audited)CURRENT
      ASSETSCash
                          
                          $
                          228,805
                          
                          
                          $
                          233,450Prepaid
      Expenses
                          
                          
                          939
                          
                          
                          
                          939Finance
      receivables - short term
                          
                          
                          72,316
                          
                          
                          
                          79,457Total
      current assets
                          
                          
                          302,060
                          
                          
                          
                          313,846OTHER
      ASSETSFinance
      receivables - long-term
                          
                          
                          144,653
                          
                          
                          
                          158,938Total
      other assets
                          
                          
                          144,653
                          
                          
                          
                          158,938TOTAL
      ASSETS
                          
                          $
                          446,713
                          
                          
                          $
                          472,784LIABILITIES AND STOCKHOLDERS'
      EQUITYCURRENT
      LIABILITIESAccrued
      and other expenses
                          
                          $
                          59,671
                          
                          
                          $
                          37,497Total
      current liabilities
                          
                          
                          59,671
                          
                          
                          
                          37,497TOTAL
      LIABILITIES
                          
                          
                          59,671
                          
                          
                          
                          37,497STOCKHOLDERS'  EQUITYPreferred
      stock, par value $10 per share;10,000,000
      shares authorized in December 31, 2008 and September 30, 2008 and 0
      sharesissued
      and outstanding at December 31, 2008 and September 30, 2008
      respectively
                          
                          
                          -
                          
                          
                          
                          -Common
      stock, par value $.001 per share;325,000,000
      shares authorized in December 31, 2008 and September 30,
    2008and
      16,052,896 and 17,122,896 shares issued and 16,052,896 and
      16,052,896outstanding
      at December 31, 2008 and September 30, 2008, respectively
                          
                          
                          16,053
                          
                          
                          
                          17,123Additional
      paid-in capital
                          
                          
                          614,541
                          
                          
                          
                          628,535Retained
      earnings (accumulated deficit)
                          
                          
                          (243,552
                          )
                          
                          
                          (195,332
                          )387,042
                          
                          
                          
                          450,326Less:
      Cost of treasury stock, 0 and 1,070,000 shares at December 31, 2008
      andSeptember
      30, 2008, respectively
                          
                          
                          -
                          
                          
                          
                          (15,039
                          )Total
      stockholders' equity
                          
                          
                          387,042
                          
                          
                          
                          435,287TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY
                          
                          $
                          446,713
                          
                          
                          $
                          472,784





The
accompanying notes are an integral part of these condensed consolidated
financial statements.


3




RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIESCONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)FOR
      THE THREE MONTHS ENDED DECEMBER 31, 2008 AND 20072008
                                              
                                              
                                              2007REVENUESFinancing
      income
                                              
                                              $
                                              77,951
                                              
                                              
                                              $
                                              161,378Gain
      on sales of finance receivable
                                              
                                              
                                              -
                                              
                                              
                                              
                                              46,944Service
      income and other
                                              
                                              
                                              8,785
                                              
                                              
                                              
                                              16,202TOTAL
      INCOME
                                              
                                              
                                              86,736
                                              
                                              
                                              
                                              224,524COSTS
      AND EXPENSESSelling,
      general and administrative
                                              
                                              
                                              136,385
                                              
                                              
                                              
                                              140,543Total
      costs and expenses
                                              
                                              
                                              136,385
                                              
                                              
                                              
                                              140,543INCOME
      (LOSS) BEFORE OTHER INCOME
                                              
                                              
                                              (49,649
                                              )
                                              
                                              
                                              83,981OTHER
      INCOME (LOSS)Interest
      income
                                              
                                              
                                              1,429
                                              
                                              
                                              
                                              1,550Interest
      expense
                                              
                                              
                                              -
                                              
                                              
                                              
                                              (6,964
                                              )Total
      other income (Loss)
                                              
                                              
                                              1,429
                                              
                                              
                                              
                                              (5,414
                                              )INCOME
      INCOME (LOSS) BEFORE PROVISION FOR INCOME TAX
                                              
                                              
                                              (48,220
                                              )
                                              
                                              
                                              78,567PROVISION
      FOR INCOME TAXES
                                              
                                              
                                              -
                                              
                                              
                                              
                                              -NET
      INCOME (LOSS) APPLICABLE TO COMMON STOCK
                                              
                                              $
                                              (48,220
                                              )
                                              
                                              $
                                              78,567BASIC
      INCOME (LOSS) PER COMMON SHARE
                                              
                                              $
                                              (0.00
                                              )
                                              
                                              $
                                              0.00DILUTED
      INCOME (LOSS) PER COMMON SHARE
                                              
                                              $
                                              (0.00
                                              )
                                              
                                              $
                                              0.00WEIGHTED
      AVERAGE OUTSTANDING SHARESOF
      COMMON STOCK - BASIC
                                              
                                              
                                              16,052,896
                                              
                                              
                                              
                                              17,078,852WEIGHTED
      AVERAGE OUTSTANDING SHARESOF
      COMMON STOCK - DILUTED
                                              
                                              
                                              16,052,896
                                              
                                              
                                              
                                              18,974,852




The
accompanying notes are an integral part of these condensed consolidated
financial statements.




4


RECEIVABLE
      ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIESCONDENSED
      CONSOLIDATED STATEMENTS OF CASH
    FLOWS  (UNAUDITED)FOR
      THE THREE MONTHS ENDED DECEMBER 31, 2008 AND
  2007  2008
                              
                              
                              2007CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      Income (Loss)
                              
                              $
                              (48,220
                              )
                              
                              $
                              78,567Adjustments
      to reconcile net income (loss) tonet
      cash (used in) operating activities:Changes
      in Certain Assets and LiabilitiesProceeds
      from sale of portfolio - net of gain
                              
                              
                              -
                              
                              
                              
                              177,545Acquisition
      of finance receivables, net of buybacks
                              
                              
                              -
                              
                              
                              
                              (201,982
                              )Collections
      applied to principal on finance receivables
                              
                              
                              21,426
                              
                              
                              
                              52,122(Increase)
      Decrease in prepaid expenses
                              
                              
                              -
                              
                              
                              
                              (1,315
                              )Increase
      (decrease) accrued expenses
                              
                              
                              22,174
                              
                              
                              
                              (18,079
                              )Net
      cash (used in) operating activities
                              
                              
                              (4,620
                              )
                              
                              
                              86,858CASH
      FLOWS FROM FINANCING ACTIVITIESRepurchase
      of  common stock
                              
                              
                              (25
                              )
                              
                              
                              (151
                              )Payments
      on notes payable
                              
                              
                              -
                              
                              
                              
                              (45,674
                              )Net
      cash (used in) financing activities
                              
                              
                              (25
                              )
                              
                              
                              (45,825
                              )NET
      INCREASE (DECREASE) IN CASH
                              
                              
                              (4,645
                              )
                              
                              
                              41,033CASH
      AND CASH EQUIVALENTS - BEGINNING OF PERIOD
                              
                              
                              233,450
                              
                              
                              
                              286,530CASH
      AND CASH EQUIVALENTS - END OF PERIOD
                              
                              $
                              228,805
                              
                              
                              $
                              327,563SUPPLEMENTAL
      DISCLOSURE OF CASH FLOW INFORMATIONCASH
      PAID DURING THE YEARInterest
      expense
                              
                              $
                              -
                              
                              
                              $
                              6,964Income
      taxes
                              
                              $
                              -
                              
                              
                              $
                              -




The
accompanying notes are an integral part of these condensed consolidated
financial statements.


5




NOTE
      1-
              NATURE
      OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
  POLICIES
 
 A.
              THE COMPANY AND
      PRESENTATION
 
 The
condensed consolidated unaudited interim financial statements included herein
have been prepared by Receivable Acquisition and Management Corporation and
Subsidiaries (the "Company"), formerly Feminique Corporation and Subsidiaries
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission (the "SEC"). Certain information and footnote disclosures
normally included in the financial statements prepared in accordance with
accounting principles generally accepted in the United States of America have
been condensed or omitted as allowed by such rules and regulations, and the
Company believes that the disclosures are adequate to make the information
presented not misleading. It is suggested that these condensed consolidated
financial statements be read in conjunction with the September 30, 2008 audited
consolidated financial statements and the accompanying notes thereto. While
management believes the procedures followed in preparing these condensed
consolidated financial statements are reasonable, the accuracy of the amounts
are in some respects dependent upon the facts that will exist, and procedures
that will be accomplished by the Company later in the year.
 
 The
management of the Company believes that the accompanying unaudited condensed
consolidated financial statements contain all adjustments (including normal
recurring adjustments) necessary to present fairly the operations, changes in
stockholders' equity (deficit), and cash flows for the periods
presented.
 
 On
November 25, 2003, the Feminique Corporation incorporated a wholly-owned
subsidiary Receivable Acquisition and Management Corp of New York. The Company
purchases, manages and collects defaulted consumer receivables.
 
 On April
21, 2004, Feminique Corporation amended its certificate of incorporation to
increase its authorized number of shares of common stock from 75,000,000 shares
to 325,000,000 shares.  This amendment was approved by Feminique
Corporation’s shareholders at its April 20, 2004 annual meeting.  The
shareholders also changed the name of Feminique Corporation to Receivable
Acquisition and Management Corporation.
 
 B.
              FINANCE
      RECEIVABLES
 
 The
Company accounts for its investment in finance receivables under the guidance of
Statement of Position (“SOP”) 03-3, “Accounting for Loans or Certain Debt
Securities Acquired in a Transfer.” This SOP limits the yield that may be
accreted (accretable yield) to the excess of the Company’s estimate of
undiscounted expected principal, interest and other cash flows (cash flows
expected at the acquisition to be collected) over the Company’s initial
investment in the finance receivables.  Subsequent increases in cash
flows expected to be collected are recognized prospectively through adjustment
of the finance receivables yield over its remaining life. Decreases in cash
flows expected to be collected are recognized as impairment to the finance
receivable portfolios. The Company’s proprietary collections model is designed
to track and adjust the yield and carrying value of the finance receivables
based on the actual cash flows received in relation to the expected cash
flows.
 
 6
 NOTE
      1-
                  SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
 B.
              FINANCE RECEIVABLES
      (CONTINUED)
 
 During
the quarter ended December 31, 2008, the Company neither acquired nor sold any
finance receivables.
 
 During
the quarter ended December 31, 2007, the Company acquired total portfolios for
$201,982. The Company will use for these portfolios the "Recovery Method" for
revenue recognition under which no revenue is recognized until the investment
amount of $201,982 has been recovered.
 
 During
the quarter ended December 31, 2007 the Company sold several portfolios for a
total sales price of $224,489. The Company recognized a net gain of $46,944 on
these sales. During the quarter ended June 30, 2008 the Company was required to
refund to the purchaser of these portfolios $11,034. Therefore the gain was
adjusted to $35,910 as of September 30, 2008.
 
 In the
event that cash collections would be inadequate to amortize the carrying
balance, an impairment charge would be taken with a corresponding write-off of
the receivable balance. Accordingly, the Company does not maintain an allowance
for credit losses.
 
 The
agreements to purchase the aforementioned receivables include general
representations and warranties from the sellers covering account holder death or
bankruptcy, and accounts settled or disputed prior to sale. The representation
and warranty period permitting the return of these accounts from the Company to
the seller is typically 90 to 180 days. Any funds received from the seller of
finance receivables as a return of purchase price are referred to as buybacks.
Buyback funds are simply applied against the finance receivable balance
received. They are not included in the Company’s cash collections from
operations nor are they included in the Company’s cash collections applied to
principal amount. Gains on sale of finance receivables, representing the
difference between sales price and the unamortized value of the finance
receivables, are recognized when finance receivables are sold.
 
 7
 NOTE
      1-
                    SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
 B.
              FINANCE RECEIVABLES
      (CONTINUED)
 
 Changes
in finance receivables for the period ended December 31, 2008 were as
follows:
  2008Balance
      at beginning of year October 1, 2008
                      
                      $
                      238,394Acquisition
      of finance receivables - net
                      
                      
                      -Cash
      collections applied to principal
                      
                      
                      (21,425
                      )Sale
      of portfolio - net of gain
                      
                      
                      -Balance
      at the end of the year
                      
                      $
                      216,969Estimated
      Remaining Collections ("ERC")*
                      
                      $
                      435,657
  *Estimated
remaining collection refers to the sum of all future projected cash collections
from acquired portfolios. ERC is not a balance sheet item, however, it is
provided for informational purposes. Income recognized on finance receivables
was $77,951 and $161,378 for the periods ended December 31, 2008 and 2007,
respectively.
 
 Under
SOP-03-3 debt security impairment is recognized only if the fair market value of
the debt has declined below its amortized costs. Currently no amortized costs
are below fair market value. Therefore, the Company has not recognized any
impairment for the finance receivables.
 
 C.
              PRINCIPLES OF
      CONSOLIDATION
 
 The
consolidated financial statements include the accounts of the Company and its
subsidiaries.  All significant intercompany accounts and transactions
have been eliminated in consolidation.
 
 D.
              CASH AND CASH
      EQUIVALENTS
 
 The
Company considers all highly liquid debt instruments and other short-term
investments with an initial maturity of three months or less to be cash or cash
equivalents. There were no cash equivalents as of December 31, 2008 and
September 30, 2008.
 
 The
Company maintains cash and cash equivalents balances at financial institutions
that are insured by the Federal Deposit Insurance Corporation up to
$250,000.  At December 31, 2008 and September 30, 2008, the Company’s
uninsured cash balances total $0 and $186,000, respectively.
 
 E.  INCOME
TAXES
 
 The
Company has adopted the provisions of Statement of Financial Accounting
Standards (“SFAS”) No. 109, Accounting for Income Taxes. The statement requires
an asset and liability approach for financial accounting and reporting of income
taxes, and the recognition of deferred tax assets and liabilities for the
temporary differences between the financial reporting bases and tax bases of the
Company’s assets and liabilities at enacted tax rates expected to be in effect
when such amounts are realized or settled.
 
 8
 NOTE
      1-
                    SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
 F.  USE OF
ESTIMATES
 
 The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during this reported period. Actual results could differ from those
estimates.
 
 G.  SHARE-BASED
PAYMENTS
 
 Effective
December 31, 2005, the Company adopted the provisions of Financial Accounting
Standards Board Statement of Financial Accounting Standard ("SFAS") No. 123(R),
"Share-Based Payments," which establishes the accounting for employee
stock-based awards. Under the provisions of SFAS No.123(R), stock-based
compensation is measured at the grant date, based on the calculated fair value
of the award, and is recognized as an expense over the requisite employee
service period (generally the vesting period of the grant). The Company adopted
SFAS No. 123(R) using the modified prospective method and, as a result, periods
prior to December 31, 2005 have not been restated. The Company recognized
stock-based compensation for awards issued under the Company's stock option
plans in other income/expenses included in the Consolidated Statement of
Operations. Additionally, no modifications were made to outstanding stock
options prior to the adoption of SFAS No. 123(R), and no cumulative adjustments
were recorded in the Company's financial statements.
  The
Company measures compensation expense for its non-employee stock-based
compensation under the Financial Accounting Standards Board (FASB) Emerging
Issues Task Force (EITF) Issue No. 96-18, "Accounting for Equity Instruments
that are Issued to Other Than Employees for Acquiring, or in Conjunction with
Selling, Goods or Services". The fair value of the option issued is used to
measure the transaction, as this is more reliable than the fair value of the
services received.
  The fair
value is measured at the value of the Company's common stock on the date that
the commitment for performance by the counterparty has been reached or the
counterparty's performance is complete. The fair value of the equity instrument
is charged directly to compensation expense and additional paid-in
capital.
 
 9
 NOTE
      1-
                    SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
 H.
              REVENUE
      RECOGNITION
 
 Revenue
is recognized based on AICPA Statement of Position 03-3, if the management is
reasonably comfortable with expected cash flows. In the event, expected cash
flows cannot be reasonably estimated, the Company will use the “Recovery Method”
under which revenues are only recognized after the initial investment has been
recovered.
 
 I.  EARNINGS (LOSS) PER SHARE OF
COMMON STOCK
 
 Historical
net income (loss) per common share is computed using the weighted average number
of common shares outstanding. Diluted earnings per share (EPS) include
additional dilution from common stock equivalents, such as stock issuable
pursuant to the exercise of stock options and warrants. Common stock equivalents
were not included in the computation of diluted earnings per share when the
Company reported a loss because to do so would be anti-dilutive for periods
presented.
 
 The
following is a reconciliation of the computation for basic and diluted
EPS:
 
 December
      31,
                      
                      
                      December
      31,2008
                      
                      
                      2007Net
      income (loss)
                      
                      $
                      (48,220
                      )
                      
                      $
                      78,567Weighted-average
      common sharesOutstanding
      (Basic)
                      
                      
                      16,052,896
                      
                      
                      
                      17,078,852Weighted-average
      common stockEquivalentsStock
      options
                      
                      
                      -
                      
                      
                      
                      950,000Warrants
                      
                      
                      -
                      
                      
                      
                      946,000Weighted-average
      common sharesOutstanding
      (Diluted)
                      
                      
                      16,052,896
                      
                      
                      
                      18,974,852
  For the
three month period ended December 31, 2008 options (950,000) and warrants
(946,000) were not included in the computation of diluted EPS because inclusion
would have been anti-dilutive.
 
 10
 NOTE
      1-
                    SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
 J.      RECENT ACCOUNTING
PRONOUNCEMENTS
 
 In
September 2006, the SEC staff issued Staff Accounting Bulletin No. 108,
Considering the Effects of Prior Year Misstatements when Quantifying
Misstatements in Current Year Financial Statements (SAB 108). SAB 108 was issued
in order to eliminate the diversity in practice surrounding how public companies
quantify financial statement misstatements. SAB 108 requires that registrants
quantify errors using both a balance sheet and income statement approach and
evaluate whether either approach results in a misstated amount that, when all
relevant quantitative and qualitative factors are considered, is material.
SAB108 must be implemented by the end of the Company's first fiscal year ending
after November 15, 2007. The adoption of SAB 108 did not have a material impact
on the Company’s financial reporting or disclosures.
  In March
2006, the FASB issued FASB Statement No. 156, Accounting for Servicing of
Financial Assets - an amendment of FASB Statement No. 140. This
Statement:
  1.
Requires an entity to recognize a servicing asset or servicing liability each
time it undertakes an obligation to service a financial asset by entering into a
servicing contract under certain situations.
  2.
Requires all separately recognized servicing assets and servicing liabilities to
be initially measured at fair value, if practicable.
  3.
Permits an entity to choose either the amortization method or the fair value
measurement method subsequent measurement methods for each class of separately
recognized servicing assets and servicing liabilities.
  4. At its
initial adoption, permits a one-time reclassification of available-for-sale
securities to trading securities by entities with recognized servicing rights,
without calling into question the treatment of other available-for-sale
securities under Statement 115, provided that the available-for-sale
securitiesare identified in some manner as
offsetting the entity's exposure to changes in fair value of servicing assets or
servicing liabilities that a servicer elects to subsequently measure at fair
value.
  5.
Requires separate presentation of servicing assets and servicing liabilities
subsequently measured at fair value in the statement of financial position and
additional disclosures for all separately recognized servicing assets and
servicing liabilities.
  The
adoption of FASB No. 156 did have did not have a material impact on the
Company’s results of operations or financial statements.
  In
September 2006, the FASB issued FASB Statement No. 157, Fair Value Measurements.
This Statement defines fair value, establishes a framework for measuring fair
value in generally accepted accounting principles (GAAP), and expands
disclosures about fair value measurements.
 
 11
 NOTE
      1-
                    SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
 J.       RECENT ACCOUNTING
PRONOUNCEMENTS (CONTINUED)
  This
Statement applies under other accounting pronouncements that require or permit
fair value measurements, the Board having previously concluded in those
accounting pronouncements that fair value is the relevant measurement attribute.
Accordingly, this Statement does not require any new fair value measurements.
FASB Statement No. 157 will be effective for our financial statements issued for
our fiscal year beginning October 1, 2008. The adoption of FASB Statement No.
157 did not have a material impact on the Company’s results of operations or
financial statements.
 
 In
February 2008, FASB Staff Position ("FSP") FAS No. 157-2, "Effective
Date of FASB Statement No. 157" ("FSP No. 157-2") was issued. FSP
No. 157-2 defers the effective date of SFAS No. 157 to fiscal years
beginning after December 15, 2008, and interim periods within those fiscal
years, for all nonfinancial assets and liabilities, except those that are
recognized or disclosed at fair value in the financial statements on a recurring
basis (at least annually). Examples of items within the scope of FSP
No. 157-2 are nonfinancial assets and nonfinancial liabilities initially
measured at fair value in a business combination (but not measured at fair value
in subsequent periods), and long-lived assets, such as property, plant and
equipment and intangible assets measured at fair value for an impairment
assessment under SFAS No. 144.
  In June
2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an
interpretation of FASB Statement No. 109" (FIN 48), which prescribes a
recognition threshold and measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to be taken in a
tax return. FIN 48 also provides guidance on recognition, classification,
interest and penalties, accounting in interim periods, disclosure and
transition. FIN 48 will be effective for our fiscal year beginning October 1,
2007.The adoption of FIN 48 did not have a material impact on our financial
reporting and disclosure.
  In
September 2006, the Securities and Exchange Commission issued Staff Accounting
Bulletin No. 108, “Quantifying Misstatements”. SAB 108 is effective for
financial statements issued for fiscal years beginning after November 15,
2007.  The adoption of SAB 108 did not have a material impact on its
results of operations or financial statements.
  The FASB
also issued in September 2006 Statement of Financial Accounting Standards No.
158, employers’ Accounting for Defined Benefit Pension and other Postretirement
Plans effective for financial statements issued for fiscal years beginning after
December 15, 2006. This Standard requires recognition of the funded status of a
benefit plan in the statement of financial position. The adoption of FASB 158
did not have a material impact on its results of operations or financial
statements.
  In
February 2007 the FASB issued Financial Accounting Standards No. 159, The Fair
Value Option for Financial Assets and Financial Liabilities – including an
amendment of FASB Statement No. 115 effective for financial statements issued
for fiscal years beginning after November 15, 2007. This Statement permits
entities to choose to measure many financial instruments and certain other items
at fair value. The adoption of FASB 159 did not have a material impact on its
results of operations or financial statements.
 
 12
 NOTE
      1-
                    SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
 J.       RECENT ACCOUNTING
PRONOUNCEMENTS (CONTINUED)
  Also in
February 2007 the FASB issued Financial Accounting Standards No. 160,
Noncontrolling Interests in Consolidated Financial Statements- an amendment of
ARB No. 51 effective for financial statements issued for fiscal years beginning
after December 15, 2008. The Company does not expect FASB 160 to have a material
impact on its results or financial statements.
  In March
2008 the FASB issued Financial Accounting Standards No. 161, Disclosures about
Derivative Instruments and Hedging Activities – an amendment of FASB No. 133
effective for financial statements issued for fiscal years beginning after
November 15, 2007. This Statement requires enhanced disclosures about an
entity’s derivatives and hedging activities and thereby improves the
transparence of financial reporting. The adoption of FASB 161 did not have a
material impact on its results of operations or financial
statements.
 NOTE
      2-
                    NOTES
  PAYABLE
 
 A.
              The Company issued
      on October 30, 2006 a note payable for the value of $150,000 in exchange
      for the retirement of 2,000,000 shares of common stock for $200,000. The
      company paid $50,000 in cash and issued a note payable of $150,000 for the
      balance. The terms are as follows: The Company is currently paying $3,000
      per month. The note had an outstanding balance of $102,899 as of December
      31, 2007. During the month of January 2008 the note was repaid in full for
      a discounted value of $40,000. The amount of $62,899 was recognized as
      income.
 
 B.
              The
      Company issued on January 8, 2007 a private note offering in the amount of
      $300,000. The Company intends to pay the holder of the note in 24 fixed
      monthly payments of $14,546 from the date of issuance of the note at a
      rate of 15% per annum on or before January 9, 2009 (the "Maturity Date”).
      The note was repaid in full during the year ended September 30,
      2008.
  
 13
 NOTE
      3-
                      STOCK
OPTIONS
 
 In April
2004, the Company adopted a stock option plan upon approval by the shareholders
at the Annual General Meeting under which selected eligible key employees of the
Company are granted the opportunity to purchase shares of the Company’s common
stock. The plan provides that 37,500,000 shares of the Company’s authorized
common stock be reserved for issuance under the plan as either incentive stock
options or non-qualified options. Options are granted at prices not less than
100 percent of the fair market value at the end of the date of grant and are
exercisable over a period of ten years or a long as that person continues to be
employed or serve on the on the Board of Directors, whichever is shorter. At
December 31, 2008 and September 30, 2008, the Company had 950,000 options
outstanding under this plan.
 NOTE
      4-
                  WARRANTS
 The
Company issued warrants during the year 2004. At  December 31, 2008
and September 30, 2008, respectively.  The Company had 946,000
warrants outstanding exercisable at approximately $.01 per warrant per
share.
  NOTE
      5-
                  INCOME
  TAXES
 Income
Taxes are provided for the tax effects of transactions reported in the financial
statements and consist of taxes currently due.  Deferred taxes related
to differences between the basis of assets and liabilities for financial and
income tax reporting will either be taxable or deductible when the assets or
liabilities are recovered or settled.  The difference between the
basis of assets and liabilities for financial and income tax reporting are not
material therefore, the provision for income taxes from operations consist of
income taxes currently payable.
 
 There was
no provision for income tax for the years ended December 31, 2008 and
2007.
 
 At
December 31, 2008 and 2007 the Company had an accumulated deficit approximating
$243,552 and $285,424 available to offset future taxable income through
2028.
  December
      31,
                        
                        
                        December
      31,2008
                        
                        
                        2007Deferred
      tax assets
                        
                        $
                        (85,243
                        )
                        
                        $
                        (99,898
                        )Less:
      valuation
                        
                        
                        85,243
                        
                        
                        
                        99,898Totals
                        
                        $
                        -
                        
                        
                        $
                        -
  14
 NOTE
      6-
                    STOCK HOLDERS’
      EQUITY
 COMMON
STOCK
 
 There
were 325,000,000 shares of common stock authorized, with 16,052,896 and
17,122,896 shares issued and 16,052,896 outstanding at December 31, 2008 and
September 30, 2008, respectively.  The par value for the common stock
is $.001 per share.
 
 The
following details the stock transactions for the period ended December 31, 2008
and 2007.
 
 During
the month ended December 31, 2007 the company cancelled 6,020 shares of common
stock at $.025 per share for a total amount of $151.
 
 During
the quarter ended December 31, 2008 the Company retired the Treasury stock of
1,070,000 shares of common stock at a market price of approximately $ .014 per
share. The total purchase price was $15,039.
 
 PREFERRED
STOCK
 
 There
were 10,000,000 shares of preferred stock authorized, no shares outstanding as
of December 31, 2008 and September 30, 2008.
 NOTE
      7-
                    RELATED
  PARTY
  The
Company receives fees from Ramco Income Fund Limited. The Company manages Ramco
Income Fund Limited a Bermuda entity. The servicing fees for the period ended
December 31, 2008 and 2007 were $8,075 and $16,202, respectively.
  15
 ITEM
2.





MANAGEMENT’S
DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.





This
“Management’s Discussion and Analysis of Financial Condition and Results of
Operations” should be read in conjunction with “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in the Annual Report
on Form 10KSB as of and for the year ended September 30, 2008 as filed with the
Securities and Exchange Commission. Cautionary Statements Pursuant to Safe
Harbor Provisions of the Private Securities Litigation Reform Act of
1995:





This
report contains forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements involve risks, uncertainties
and assumptions that, if they never materialize or prove incorrect, could cause
the results of the Company to differ materially from those expressed or implied
by such forward-looking statements. All statements, other than statements of
historical fact, are forward-looking statements, including statements regarding
overall trends, gross margin trends, operating cost trends, liquidity and
capital needs and other statements of expectations, beliefs, future plans and
strategies, anticipated events or trends, and similar expressions concerning
matters that are not historical facts. The risks, uncertainties and assumptions
referred to above may include the following:





§
            changes
      in the business practices of credit originators in terms of selling
      defaulted consumer receivables   or outsourcing defaulted
      consumer receivables to third-party contingent fee collection
      agencies;





§
            ability
      to acquire sufficient portfolios;





§
            ability
      to recover sufficient amounts on acquired
  portfolios;





§
            a
      decrease in collections if bankruptcy filings increase or if bankruptcy
      laws or other debt collection laws
change;





§
            changes
      in government regulations that affect the Company’s ability to collect
      sufficient amounts on its acquired or serviced
  receivables;





§
            the
      Company’s ability to retain the services of recovery
    partners;





§
            changes
      in the credit or capital markets, which affect the Company’s ability to
      borrow money or raise capital to purchase or service defaulted consumer
      receivables;





§
            the
      degree and nature of the Company’s competition;
  and





§
            our
      ability to respond to changes in technology and increased
      competition;





§
            the
      risk factors listed from time to time in the Company’s filings with the
      Securities and Exchange Commission.





Overview





The
Company is engaged in the purchase and recovery of defaulted consumer
receivables. These receivables are acquired at deep discounts and outsourced for
collections on a contingency basis. The Company also manages Ramco Income Fund,
Ltd, a Bermuda domiciled mutual fund with circa $375,000 under management. The
Company continues to seek additional capital to invest into additional
portfolios but it cannot provide any assurances that it will be able to raise or
generate such capital.


16





RESULTS
OF OPERATIONS





Overview





The
Company continues to execute its long term strategy. With several relationships
in place with debt sellers, the Company is now in discussions with several
lenders for a credit facility which will allow us to acquire larger portfolios
although it cannot provide any guarantees that it will be successful in any
obtaining any such credit facility or finalizing any such acquisition. The
following table summarizes collections, revenues, operating expenses, income
before taxes and fully diluted net income.





Three Months Ended December 31, 20082008
                        
                        
                        2007
                        
                        
                        $ Change
                        
                        
                        % ChangeNet
      Collections (excluding sale)
                        
                        $
                        98,216
                        
                        
                        $
                        199,409
                        
                        
                        $
                        (101,193
                        )
                        
                        
                        -51
                        %Finance
      Income
                        
                        $
                        77,951
                        
                        
                        $
                        161,378
                        
                        
                        $
                        (83,427
                        )
                        
                        
                        -52
                        %As
      a Percentage of Income
                        
                        
                        79
                        %
                        
                        
                        81
                        %Servicing
      Income
                        
                        $
                        8,785
                        
                        
                        $
                        16,202
                        
                        
                        $
                        (7,417
                        )
                        
                        
                        -46
                        %Operating
      Expenses
                        
                        $
                        136,385
                        
                        
                        $
                        140,543
                        
                        
                        $
                        (4,158
                        )
                        
                        
                        -3
                        %Net
      Income (Loss)
                        
                        $
                        (48,220
                        )
                        
                        $
                        78,567
                        
                        
                        $
                        (126,787
                        )
                        
                        
                        -161
                        %Fully
      Diluted EPS
                        
                        
                        (0.00
                        )
                        
                        $
                        (0.00
                        )
                        
                        $
                        (0.00
                        )
                        
                        $
                        (0.00
                        )





Revenue





During
the quarter ended December 31, 2008, the Company had a net loss of ($48,220)
versus net income of $78,657 during the quarter ended December 31, 2007. For the
three months ended December 31, 2008 the Company had revenue of $86,736, versus
revenue of $224,524 during the quarter ended December 31, 2007. Total revenue
for the quarter ended December 31, 2008 included finance income of $77,951 and
servicing income of $8,785 versus finance income of $161,378 and servicing
income of $16,202 during the quarter ended December 31, 2007. Finance income
declined by approximately 52% or $83,427 and servicing income declined by 46% or
$7,417 during the quarter ended December 31, 2008 when compared to quarter ended
December 31, 2007. Servicing income has been declining due to run-off of
portfolios held in Ramco Income Fund. The company collected $98,216 during the
quarter ended December 31, 2008 versus $199,409 during the quarter ended
December 31, 2007. As a percentage of cash collection, recognized revenue
(finance income) was approximately 79% during the quarter compared to 81% in the
quarter ended December 31, 2007.


17





Operating
Expenses





Total
operating expenses for the three month ended December 31, 2008 were $136,385
compared to $140,543 for the three month ended December 31, 2007. The Company
continues to reduce operating expensed in light of declining recoveries and lack
of investments in new portfolios.





Rent and
Occupancy





Rent and
occupancy expenses were $9,410 for the three months ended December 31, 2008
versus $9,425 for the three months ended December 31, 2007.





Depreciation





The
Company did not record any depreciation expense for the three months ended
December 31, 2008.





Purchase
of Defaulted Receivables





During
the quarter ended December 31, 2008, the Company did not acquire any portfolios
compared to acquisition of portfolios with aggregate face value amount of
$5,779,237 with a purchase price of $201,982 during the quarter ended December
31, 2007. As a part of its strategy, the Company does not do any in-house
collection, but outsources collection to carefully selected specialist debt
collection agencies. The Company is currently working with several collection
agencies on a contingency basis. The contingency fees averaged 28% during the
quarter.





Portfolio
Data





The
following table shows the Company’s portfolio buying activity during the
quarter, among other things, the purchase price, actual cash collections and
estimated cash collection as of December 31, 2008.





Purchase Period
                  
                  Purchase
                    Price(1)
                  
                  
                  Actual Cash
                    Collection (2)
                  
                  
                  Estimated (3)12/31/2003
                  
                  $
                  569,070
                  
                  
                  $
                  1,768,854
                  
                  
                  $
                  14,4204/11/2005
                  
                  $
                  375,000
                  
                  
                  $
                  453,635
                  
                  
                  $
                  26,4107/25/2005
                  
                  $
                  177,668
                  
                  
                  $
                  256,280
                  
                  
                  $
                  12,5003/9/2006
                  
                  $
                  191,992
                  
                  
                  $
                  213,676
                  
                  
                  $
                  11,0004/7/2006
                  
                  $
                  331,974
                  
                  
                  $
                  344,172
                  
                  
                  $
                  15,73512/31/04-12/20/06
                  
                  $
                  780,875
                  
                  
                  $
                  1,025,590
                  
                  
                  $
                  120,4931/7/2007
                  
                  $
                  324,248
                  
                  
                  $
                  261,303
                  
                  
                  $
                  122,97210/11/2007
                  
                  $
                  201,982
                  
                  
                  $
                  71,856
                  
                  
                  $
                  110,125





(1)           Purchase
price refers to the cash paid to a seller to acquire defaulted receivables, plus
certain capitalized expenses, less the purchase price refunded by the seller due
to the return of non-compliant accounts (also defined as buybacks).
Non-compliant refers to the contractual representations and warranties between
the seller and the Company. These representations and warranties from the
sellers generally cover account holders’ death or bankruptcy and accounts
settled or disputed prior to sale. The seller can replace or repurchase these
accounts.





(2)           Actual
cash collections net of recovery cost or sale.





(3)
            Total
      estimated collections refers to the actual cash collections, including
      cash sales, plus estimated remaining collections.   The
      Company will take an impairment charge if the actual recoveries fall short
      of expected recoveries.


18





When the
Company acquires a portfolio of defaulted receivables, it estimates the expected
recovery of the portfolio. A 60 month projection of cash collections is created
for each portfolio. Only after the portfolio has established probable and
estimable performance in excess of projections will the accretable yield be
increased and recognized as revenue.  If actual cash collections are
less than the original forecast, the Company will take an impairment charge.
Collection activities commence within 30 days of purchase, which allows for
adequate time to scrub the portfolio for deceased, settled, incarcerated and
bankruptcy filed accounts. For modeling and revenue recognition purposes, the
company uses 15 calendar days.





Recovery
Partners





The
Company outsources all its recovery activities to carefully selected debt
collection agencies and network of collection attorneys with specific collection
expertise. The company is currently using 6 collection agencies and several law
firms in the U.S. and U.K. The average contingent collections fee is
approximately 25% which is expected to rise during the later years of
recovery.





Seasonality





Collections
tend to be higher in the first and second quarters of the year and lower in the
third and fourth quarter of the year, due to consumer payment patterns in
connection with seasonal employment, income tax refunds and holiday spending
habits.





Currency
Risk





The
Company currently holds one portfolio in the United Kingdom and such purchase
may expose the company to adverse currency risks.





Liquidity
and Capital Resources





As of
December 31, 2008, the Company had a working capital of $242,389 versus working
capital of $211,965 during the quarter ended December 31, 2007. The increase in
working capital is largely due to reduction in expenses and repayment of note
payables during the year ended September 30, 2008. The Company believes that
funds generated from operations, resale of portfolios together with existing
cash will be sufficient to finance its operations for the foreseeable future.
For the three month ended December 31, 2008 the Company had net cash of $228,805
versus $327,563 at the end of quarter ended December 31, 2007. Net cash provided
by operating activities was ($4,620) for the three months ended December 31,
2008 versus $86,858for the three months ended December 31, 2007. Net cash used
by financing activities was ($25) during the quarter ended December 31, 2008
compared to ($45,825) during the quarter ended December 31, 2007. Our primary
investing activity to date has been the purchase of charged-off consumer
receivable portfolios. However, during the quarter, the Company did not invest
in any portfolio compared to the quarter ended December 31, 2007 during which we
invested $201,982 in portfolios with a face value of approximately
$5,779,237.





Cash
generated from operations is dependent upon the Company’s ability to collect on
its defaulted consumer receivables. Many factors, including the economy,
purchase price and the Company’s ability to retain the services of its recovery
partners, are essential to generate cash flows. Fluctuations in these factors
that cause a negative impact on the Company’s business could have a material
negative impact on its expected future cash flows. During the quarter, the
Company generated approximately $98,216 from collections and $8,785 from
servicing compared to $199,409 from collections and $16,202 from servicing
during the quarter ended December 31, 2007. Cash collections will continue to
decline to difficult economic environment, lack of portfolio investments and
impaired ability to resell portfolios in the secondary market.


19





The
Company believes that funds generated from operations, together with existing
cash will be sufficient to finance its operations for the foreseeable future The
Company has begun strategic review of operations and exploring the possibility
of non-strategic acquisition or merger with another operating
company.





Income
Taxes





We did
not record any income tax provision for the three months ended December 31,
2008.





Contractual
Obligation





The
Company entered into a 12 month lease with H&Q Global Services at $2,500 per
month plus variable expenses that include telecommunication, copier, postage and
delivery charges. This lease expires on February 28, 2009 and the Company
expects to stay on a month-to-month basis.





Market
Outlook for Charged-off Receivables





Recently there has been a substantial
inflow of capital into this business which has resulted in significant increase
in prices paid. Prices have started to come down due to tighter credit
environment and declining quality of consumer credit. Any pronounced
correction will force many too sell their remaining portfolios and exit the
marketconsidering
the payback periods have been stretched due to high prices paid.





Critical
Accounting Policy & Estimates





Our
Management’s Discussion and Analysis of Financial Condition and Results of
Operations section discusses our condensed consolidated financial statements,
which have been prepared in accordance with accounting principles generally
accepted in the United States of America as promulgated by the Public Company
Accounting Oversight Board. The preparation of these financial statements
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amount of revenues and expenses during the reporting period. On an
ongoing basis, management evaluates its estimates and judgments, including those
related to revenue recognition, accrued expenses, financing operations, and
contingencies and litigation. Management bases its estimates and judgments on
historical experience and on various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying value of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these
estimates under different assumptions and conditions. The most significant
accounting estimates inherent in the preparation of our financial statements
include estimates as to the appropriate carrying value of certain assets and
liabilities which are not readily apparent from other sources. These accounting
policies are described at relevant sections in this discussion and analysis and
in the condensed consolidated financial statements included in this quarterly
report.





The
Company utilizes the interest method under guidance provided by the AICPA issued
Statement of Position (“SOP”) 03-03 to determine income recognized on finance
receivables. In October 2004, the American Institute of Certified Public
Accountants issued Statement of Position (“SOP”) 03-03, “Accounting for Loans or
Certain Securities Acquired in a Transfer.” This SOP proposes guidance on
accounting for differences between contractual and expected cash flows from an
investor’s initial investment in loans or debt securities acquired in a transfer
if those differences are attributable, at least in part, to credit quality. This
SOP is effective for loans acquired in fiscal years beginning after
March 15, 2005. The SOP would limit the revenue that may be accrued to the
excess of the estimate of expected future cash flows over a portfolio’s initial
cost of accounts receivable acquired. The SOP would require that the excess of
the contractual cash flows over expected cash flows not be recognized as an
adjustment of revenue, expense, or on the balance sheet. The SOP would freeze
the internal rate of return, referred to as IRR, originally estimated when the
accounts receivable are purchased for subsequent impairment testing. Rather than
lower the estimated IRR if the original collection estimates are not received,
the carrying value of a portfolio would be written down to maintain the original
IRR. Increases in expected future cash flows would be recognized prospectively
through adjustment of the IRR over a portfolio’s remaining life. The SOP
provides that previously issued annual financial statements would not need to be
restated. Management is in the process of evaluating the application of this
SOP.


20





OFF-BALANCE
SHEET ARRANGEMENTS




The
Company has no off-balance sheet arrangements





RISK
FACTORS





IN
ADDITION TO OTHER INFORMATION IN THIS REPORT, YOU SHOULD CONSIDER THE FOLLOWING
RISK FACTORS CAREFULLY.  THESE RISKS MAY IMPAIR THE COMPANY'S
OPERATING RESULTS AND BUSINESS PROSPECTS AS WELL AS THE MARKET PRICE OF THE
COMPANY'S COMMON STOCK.





PENNY
STOCK REGULATIONS AND REQUIREMENTS FOR LOW PRICED STOCK





The SEC
adopted regulations which generally define a "penny stock" to be any non-Nasdaq
equity security that has a market price of less than $5.00 per share, subject to
certain exceptions.  Based upon the price of the Common Stock as
currently traded on the NASDAQ Bulletin Board, the Company's Common Stock is
subject to Rule 15g-9 under the Exchange Act which imposes additional sales
practice requirements on broker-dealers which sell securities to persons other
than established customers and "accredited investors."  For
transactions covered by this rule, a broker-dealer must make a special
suitability determination for the purchaser and have received a purchaser's
written consent to the transaction prior to sale.  Consequently, this
rule may have a negative effect on the ability of stockholders to sell common
shares of the Company in the secondary market.





ITEM
      3.
            CONTROLS
      AND PROCEDURES





Evaluation of disclosure controls and
procedures





The term
“ disclosure controls and procedures “ is defined in Rules 13(a)-15e and 15(d) -
15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act). Our
principal executive officer and principal financial officer have evaluated the
effectiveness of our disclosure controls and procedures as of December 31, 2008.
They have concluded that, as of December 31, 2008 that our disclosures were
effective to ensure that:




(1)
            That
      information required to be disclosed by the Company in reports that it
      files or submits under the act is recorded, processed, summarized and
      reported, within the time periods specified in the Commissions’ rules and
      forms, and(2)
            Controls
      and procedures are designed by the Company to ensure that information
      required to be disclosed by Receivable Acquisition & Management
      Corporation Inc. in the reports it files or submits under the Act is
      accumulated and communicated to the issuer’s management including the
      principal executive and principal financial officers or persons performing
      similar functions, as appropriate to allow timely decisions regarding
      financial disclosure.





21


This term
refers to the controls and procedures of a Company that are designed to ensure
that information required to be disclosed by a Company in the reports that it
files under the Exchange Act is recorded, processed, summarized and reported
within the required time periods. Our principal executive officer and principal
financial officer have evaluated the effectiveness of our disclosure controls
and procedures as of the end of the period covered by this quarterly report.
They have concluded that, as of December 31, 2008 our disclosure and procedures
were effective in ensuring that required information will be disclosed on a
timely basis in our reports filed under the exchange act.





CHANGES IN INTERNAL CONTROL
OVER FINANCIAL REPORTING





No
changes in the Company’s internal control over financial reporting have come to
management’s attention during the Company’s last fiscal quarter that have
materially affected, or are likely to materially affect, the Company’s internal
control over financial reporting.





PART II





OTHER
INFORMATION





ITEM
      1.
            LEGAL
      PROCEEDINGS





The
Company is not a party to any material pending legal proceedings or, to the best
of its knowledge, a proceeding being contemplated by a governmental authority,
nor is any of the Company’s property the subject of any pending legal
proceedings or a proceeding being contemplated by a governmental authority
except for the following:




·
            On
      April 23, 2004, Reliant Industries, Inc., Michael Wong and Debbie Wong
      filed a complaint with the Supreme Court of the State of New York Suffolk
      County against Biopharmaceuticals, Inc. and Edward
      Fine.  Biopharmaceuticals, Inc. is the Company’s former
      name.  The plaintiffs allege that the Company together with the
      other defendant committed fraud, breach of contract and
      negligence.  The plaintiffs are seeking monetary payments for
      any loss that they may suffer as a result of the alleged fraud, breach of
      contract and negligence as well as legal fees, punitive damages and costs
      disbursements.  The Company denies all allegations and intends
      to defend this action vigorously.  The case was dismissed in the
      Company’s favor on February 7,
2007.




·
            On
      June 29, 2005, Allied Surgical Centers Management, LLC, et al. (“Allied”)
      filed a complaint against the Company seeking declaratory and injunctive
      relief in connection with contracts entered in April 2005 between Allied
      and the Company pursuant to which the Company acquired various account
      receivables from Allied (the “Contracts”).  Such compliant was
      filed in the Superior Court of the State of California, For the County of
      Los Angeles, Central District.    Allied is seeking a
      declaratory judgment from the court which would exclude various account
      receivables (the “Disputed Account Receivables”) from the
      Contracts.  Allied is also seeking a temporary restraining order
      and preliminary injunction restricting the Company from attempting to
      seize or collecting the Disputed Account Receivables.  The
      Company filed a cross complaint on July 15, 2005.  In the cross
      complaint, the Company is seeking an accounting, a mandatory injunction
      for specific performance of the Contracts and damages in the amount of
      $21,000,000 in connection with Allied’s alleged breach of contract, fraud,
      intentional interference with prospective economic advantage, breach of
      good faith, breach of fiduciary duty, conversion and
      slander.  The Company and Allied have reached a settlement in
      connection with this matter. Allied has dropped all its claims and agreed
      to pay all funds received since the purchase of Allied’s portfolio in
      April 2005. The settlement agreement was executed on February 10, 2006 and
      the Company received the first settlement payment on March 1, 2006 and
      final settlement in January 2008.




·
            On
      September 9, 2005, the Company filed a complaint with the Supreme Court of
      the State of New York – County of New York against Triton Capital, Inc.,
      Southern Capital Associates, Inc., JMS Collections, LLC., Wendt Law
      Office, James Roscetti, and Dave Dwyer for breach of contract, conversion,
      deceptive business practices and unjust enrichment.  The Company
      is seeking an amount no less than $46,931. The Company reached a
      settlement with the Defendants and recovered $7,092 in July
      2007.


22





ITEM
      2.
            UNREGISTERED
      SALE OF EQUITY SECURITIES AND USE OF
PROCEEDS





The
Company repurchased 1,070,000 shares at a price of $0.015 per share during the
quarter ended December 31, 2008.  The total repurchase price was
$15,000.





ITEM
      3.
            DEFAULTS
      UPON SENIOR SECURITIES





Not
Applicable.





ITEM
      4.
            SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY
HOLDERS





Not
Applicable.





ITEM
      5.
            OTHER
      INFORMATION





Not
Applicable





ITEM
      6.
              EXHIBITS





Exhibits:ExhibitNumber
                
                Description31.1
                
                Certification
      pursuant to Section 302 of the Sarbanes-Oxley Act of
  2002.32.1
                
                Certification
      pursuant to Section 906 of the Sarbanes-Oxley Act of
  2002.


23





SIGNATURES





In
accordance with the requirements of the Exchange Act, the Company has caused
this report to be signed by the undersigned, thereunto duly
authorized.





RECEIVABLE
      ACQUISITION & MANAGEMENT CORPORATIONDate:  February
      17, 2009By:
                                      /s/ Max KhanMax
      KhanChief
      Executive OfficerChief
      Financial OfficerDirector





In
accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated:





/s/
      Max KhanBy:  Max
      KhanChief
      Executive Officer,Chief
      Financial Officer and DirectorDate:  February
      17, 2009


24